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About Production Function
A Production Function shows the maximum quantity of a commodity that can be produced per unit of time with the given amount of inputs when the best production techniques available are put to use. A production function is generally expressed this way:
Q = f (f1, f2, f3….fn)
Where ‘Q’ represents Quantity of a Commodity Produced, ‘f’ states the functional relationship and f1, f2, f3…fn are quantities of different inputs used in the production of this commodity.
Production Function can be of two types:
1) Short Run Production Function: It refers to the relationship between output of a commodity produced and the factor inputs used, when one factor is variable and all other factors are fixed. It can be expressed as,
Q = f (L, K)
Where, Q = Output Produced, L = Variable Factor Labor, k = Fixed Factor Capital.
2) Long Run Production Function: It studies the behavior of output when all inputs used in the production of a commodity are changed simultaneously. It can be expressed as,
Q = f (L, K)
Where Q = Quantity Produced; L and K are both variable factors Labor and Capital respectively.
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